Ethiopia’s Ministry of Finance and National Bank of Ethiopia complete fourth review of reform programme, triggering IMF USD 261 million disbursement

Ethiopia’s Ministry of Finance and the National Bank of Ethiopia issued a joint update confirming the successful completion of the Fourth Review of the country’s economic reform programme under the Homegrown Economic Reform Agenda. The review found performance stronger than expected, with all quantitative performance criteria met and most indicative targets exceeded, leading the International Monetary Fund Executive Board to approve the release of an additional USD 261 million, taking total disbursements under the arrangement to over USD 2.18 billion. The release highlights a combination of sustained growth, declining inflation, improved fiscal discipline and rebuilding foreign exchange reserves. It points to foreign exchange market reforms including a shift to transparent FX auctions and steps toward a market-based system, alongside stronger revenue mobilisation supported by tax policy and administration reforms and prudent expenditure management. It also notes progress on debt sustainability, including completion of the Official Creditor Committee Memorandum of Understanding under the G20 Common Framework, and ongoing financial sector reforms to modernise monetary policy, strengthen banking supervision, and reinforce the National Bank of Ethiopia’s autonomy and capacity.